Saheed Ibrahim,
Samuel Edu
& Kayode Afolabi

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Economics and communication experts have warned that the proposed increase in mobile phone services  tariffs would bring untold hardship to Nigerians and may kill many businesses.

This is coming few days after the Global System for Mobile Communications (GSM) operators wrote the Federal Government for permission to increase tariff by 40 percent.

Reacting, a Professor of Economics at the Federal University of Technology,  Akure (FUTA), Prof. Simon-Oke Olayemi  stressed that any  increment would compound the hardship Nigerians face.

Prof. Olayemi suggested that government must wake up to its responsibilities and initiate price control mechanisms to make life better for the masses.

He added that the Federal government must review its unfavourable economic policies and do what is needful to boost the economy.

“Another thing is that there should be equal treatment. You  will be surprised to know that most of this top government political office holders have free access to the services of these telecommunications, they make calls for free, their subscription is also free but the masses are mandated to pay exorbitantly.

“Finally, there is need for political leaders that has integrity and political will, one that can make favourable rules and dare the consequences, it is then we can be where we ought to be as a nation.”

Another Economic scholar from the Department of Economics, Adekunle Ajasin University, Akungba Akoko, Dr Mary Fasoranti said “with the pace of development, the demand for communication networks had become relatively inelastic, hence increase in tariff would have multiplier effects on the economy.

“There will be increase in the cost of doing business which will lead to increase in the prices of goods and services. Most institutions depend on these networks for their internet connectivity. It could also lead to job loss as demand will nosedive.

“Most people earn their living through trade in these networks, hence the increase could amount to loss of livelihood. Generally, the effects will cut across different strata of the economy.”

Her colleague in the same department, Dr Bakare Adewale also said  “it will cause Cost Push Inflation because it will bring increment to the cost of many things where those services are used and this will cause a general rise in prices, which will in turn increase poverty.

Bakare urged gorverment to resist the increment in order not to push more people below the poverty line.

Similarly, Dr Chris Ofonyelu explained that the proposed increase was motivated by the increase in the cost of diesel, which had increased by over 300 percent in the last 12 months.

While acknowledging that running cost of the telecoms companies had also increased, he said 40 percent increase in tariff would be deadly for Nigerians and also have ripple effects on GSM operators’ businesses as subscribers would call less during the day and adopt the old method of making long calls at night.

Also speaking, a communication expert  in Mass Communication department, Rufus Giwa Polytechnic Owo, Dr. Rahman Abubakri said the hardship faced by Nigerians was due to lack of sensitivity of the government, whose responsibility is to protect the citizens.

“Nigerians are currently at suffocating level, whereby electricity charges have been increased severally, petrol scarcity which lasted for months has just ended , but transport fares for intra and inter-city remain very high and unchecked.